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UK government sets out £1 bn industrial decarbonisation strategy

Published March 19, 2021

UK government sets out £1 bn industrial decarbonisation strategy

The UK government has set out a £1 billion strategy to stimulate low-carbon industry, green jobs and cut emissions from industry, schools and hospitals.

According to The Guardian, the £1bn refers to spending that had been announced previously and that is now being allocated to specific projects.

“This is not so much about the money as about setting clear intentions,” said Jeremy Nicholson, Alfa Energy’s corporate affairs officer. “This is a major step forward and very significant milestone on the journey to net zero.”

The government claims the strategy will cut carbon emissions by two-thirds in 15 years and create 80,000 jobs by 2050. Furthermore, 40% of UK industry’s energy supply will switch from to low carbon sources by 2030.

The Industrial Decarbonisation Strategy includes the allocation of £171 million to nine decarbonisation infrastructure projects such as carbon capture and hydrogen, and £932 million to fund low carbon heating systems at 429 projects across England to reduce carbon emissions from public buildings.

The nine decarbonisation projects are located in Scotland, South Wales and North West, Humber and Teesside in England. For instance, Net Zero Teesside and the Northern Endurance Partnership will receive £52 million for two projects to decarbonise the Teesside industrial cluster. And more than £21 million is earmarked for the Zero Carbon Humber Partnership project to deliver the H2H Saltend hydrogen production plant.  A further £12 million will go to Humber Zero to create a carbon capture and hydrogen hub at Immingham, North East Lincolnshire.

Meanwhile, the £932 million will officially fund the installation of heat pumps, insulation and LED lighting under the collective name of the Public Sector Decarbonisation Scheme. Eligible public buildings include hospitals, schools and council buildings.

The strategy will also include the introduction of new rules on measuring the energy and carbon performance of commercial and industrial buildings in England and Wales. This could save businesses £2 billion per year in energy costs in 2030.

The government will also work with the recently re-constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’